Although they fought the good fight longer than many of their brethren it looks like NovaStar Mortgage, Inc may be in a nose dive they are not going to be able to pull out of. I drive by their place 3-4 times per week and there are still cars out front. But for how long?
By slashing about 66% of their jobs and ceasing all new mortgage activity NovaStar was hoping to be able to hang on by servicing their current portfolio. But alas, they have announced that they are no longer going to pay dividends to their shareholders. That has a dire affect upon their REIT status and may just get them de-listed on the NYSE.
Kansas City is not big enough that it can just shirk-off any company going under. So as a Kansas Citian I’m pulling for NovaStar. As a realist I realize this is probably the end.
Well Chris,
The good news is, they are trying to hang on. That bodes well as the easy thing to do is simply shut down. By laying people off, they are taking a huge hit to their unemployment insurance. They wouldn’t keep the doors open and pay that if they didn’t think (hope) they could pull though.
Think positive thoughts!